Current Account defecit worsening.

Investopedia defines current account as the difference between a country's total exports and its total imports. It is considered to be an indicator of the trends in foreign trade. A current account deficit (CAD) indicates that the import bill is much larger than the total export. Having a deficit in the current account is not necessarily a bad thing in the short term. But if it continues for a longer time then it indicates that the country is becoming more and more a net debtor to the rest of the world. Not such a good position to be in. Unfortunately this is the position India is in. Over the last few years, India's current account deficit as a percentage of GDP has been rising. In fact the percentage in FY12 was as high as 4.2%. Though things are expected to improve next year but even then the projected percentage is still higher than what it was in FY10 and FY11. It even fares poorly compared to its Asian peers.